SEC Probes Overstock's Claim
Of Stock-Market Manipulation

By

Kara Scannell

Updated Feb. 25, 2006 11:59 p.m. ET

A battle between an Internet discount retailer and a stock-research firm has attracted the attention of the Securities and Exchange Commission, which is investigating allegations of market manipulation.

With hedge funds acquiring more clout in their ability to move stocks, some companies are fighting back, accusing short-sellers of using tactics such as manipulated or false research to drive down the price of stocks. One battle -- and one that has piqued the SEC's interest -- involves accusations by Overstock.com Inc. that...